June saw a net increase in shares purchased by foreign institutional investors (FIIs), totaling USD 3.2 billion, the second-highest monthly purchase amount after USD 4.2 billion in March.
This follows two consecutive months of massive FII sell-offs, totaling USD 3.1 billion in May and USD 1.04 billion in April, respectively.
Since the announcement of the election results in early June, Indian markets have essentially been on a winning streak, with the Sensex and Nifty hitting new highs almost every day of the month.
Nifty june performance |
Nifty monthly performance
The benchmark index, Nifty, saw a massive 869-point gain in June. For a total of 3.74 per cent gain, 551 points out of 869 points 551 points were achieved in the last 5 trading sessions of the month; percentage-wise, it's 2.39 per cent jump in a single trading week.
Nifty 5 days performace |
In addition, the gains in June on the Sensex and Nifty were close to seven per cent, and the June quarter saw gains of over 7.3 percent.
Broader Market
Gains in the broader market are even better, with quarterly increases of 17 and 21 per cent for the BSE midcap and BSE smallcap indices, respectively, which gained 7.7 and 10.8 percent in the month of June, respectively.
Even the net index futures contracts held by global funds with bullish interest have reached their highest levels in seven years, indicating that FIIs are displaying strong positive sentiment by increasing their bullish positions in Indian equity's derivative contracts.
Domestic institutional and retail investors
Robust backing from domestic institutional and retail investors. Reports point out that even with lower FPI allocations and withdrawals totaling USD 3 billion (25 thousand crore), Indian markets rebounded after the election. Nifty50 flows are now driven by domestic institutional investors (DIIs), also known as domestic funds, and retail investors, demonstrating faith in the Indian economy and corporate profits.
